Frasier and Niles compete over who will get the best present for Martin’s birthday. Frasier buys a huge TV set, while Niles manages to find Martin’s old police horse Agides. After the party, though, Frasier and Niles find Martin down at the stables talking to his horse about the sadness of ageing.

At Niles literary-themed Halloween ball, Niles and Martin overhear snippets of conversation leading them to believe Frasier and Daphne are sleeping together, and Frasier has impregnated Roz. Niles then challenges Frasier to a duel leading to everyone finding out that Roz is pregnant…

Roz has booked Frasier as a guest on a cruise ship, and Martin and Niles go along too. To cheer up a depressed Niles about his separation, Maris is invited as well, but their plan goes to pieces when Niles is chased by Mimi Cosgrove causing Maris to seek solace in The Barracuda , the Latin singing sensation…

Frasier begins a relationship with high-flying attorney, Samantha Pierce. All is well until his family point out that Frasier is playing out the role of the submissive female in a relationship. How will Frasier handle this news?

Martin, Daphne, Niles and Roz recount their interconnecting stories of a stressful Christmas period, including Martin being in a Christmas pageant, Daphne thinking Martin is dying and Frasier accidentally informing Roz’s mother she is pregnant. All the while Frasier struggles to find the perfect gift for everyone.

Frasier is bored with his regular routine, so Daphne invites him to her British pub, and is soon getting on with everyone like a house on fire. Soon, though, Daphne feels he is invading her turf and so a darts match is arranged to decide who gets to keep visiting the pub…